National Fertilizers Ltd. · NSE:NFL
National Fertilizers — Q3 FY2021 Earnings Presentation
54 slides from National Fertilizers's earnings presentation, January 2021
Slide 1: Financial Performance for the Quarter / Nine Months Ended December 20
FINANCIAL PERFORMANCE FOR THE QUARTER / NINE MONTHS ENDED DECEMBER 20
Slide 2: Brief Overview
BRIEF OVERVIEW Introduction • Incorporated on 23rd August, 1974. • Share Capital details as on 31.12.2020. Authorized capital : Rs. 1,000.00 crore. Paid up capital : Rs. 490.58 crore. Net-worth : Rs. 2,171.51 crore. Shareholding Pattern as on 31.12.2020: Government of India 74.71% Financia
Slide 3: Brief on Urea Manufacturing Activities
BRIEF ON UREA MANUFACTURING ACTIVITIES UREA Vijaipur‐I Vijaipur‐ Bathinda Panipat Nangal II ANNUAL CAPACITY (Lakhs Metric Ton) – 8.646 8.646 5.115 5.115 4.785 32.31 LMT (Revised Assessed Capacity) Annual Capacity after Urea Capacity 9.999 10.662 5.115 5.115 4.785 Enhancement Projects at Vijaipur‐I &
Slide 4: Plant Locations, Marketing Territory, Port handling & JV
Plant Locations, Marketing Territory, Port handling &JV 4
Slide 5: Brief on Other Manufacturing Activities
BRIEF ON OTHER MANUFACTURING ACTIVITIES Other Manufacturing:‐ (Industrial Products, Bio‐Fertilizers , Technical Surplus Ammonia) etc. : S. No. Products Located in No. of Annual Capacity of each streams stream (MT) Industrial Products 1. Nitric acid Nangal 2* 69436 2. Ammonium Nitrate Nangal 2* 11880
Slide 6: Brief on Trading Activities (Sale Based)
BRIEF ON TRADING ACTIVITIES (Sale Based) Traded Goods : S. Products 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 No. Imported Fertilizers LMT LMT LMT LMT LMT 1. DAP (LMT) 0.51 2.14 3.28 5.04 6.85 2. MOP (LMT) ‐ ‐ 0.27 ‐ 0.74 3. APS (LMT) ‐ ‐ 0.26 0.26 0.39 4. NPK 12:32:16 (LMT) ‐ ‐ ‐ 0.68 0.50 5. NPK 10:
Slide 7: Production of Urea (Qty. in LMT)
Production of Urea (Qty. in LMT) Production of Urea Plants 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 NANGAL 5.47 5.02 5.43 5.41 5.75 PANIPAT 5.67 5.43 5.60 5.74 5.52 BATHINDA 5.48 5.68 5.63 5.84 5.63 VIJAIPUR- I 9.92 10.58 10.50 10.28 9.84 VIJAIPUR-II 11.44 11.39 10.95 11.32 10.53 TOTAL 37.99 38.10 38
Slide 8: Financial Performance at a Glance (Preceding 5 Years)
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 5 Years) (Rs. crore) SL .No. Particulars 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 1 Production (Urea) (LMT) 37.99 38.10054 38.10250 38.59 37.27 2 Sale of Own Urea (LMT) 36.41 37.58 39.16 38.98 36.08 3 Sale of Other Fertilizers (LMT) 0.52 2.20 3.93 9.97 20.
Slide 9: Financial Performance at a Glance (Preceding 5 Years)
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 5 Years) (Rs. crore) Particulars 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 SL. No. 19 Net Fixed Assets 4291 4109 4144 4127 4382 20 Working Capital 1487 1424 981 1144 532 21 Long Term Borrowings 1828 981 171 341 769 STL (without SBA) 4296 1989 2695 4670 6119
Slide 10: Sale of All Fertilizers (LMT)
Sale of All Fertilizers (LMT) All Fertilizers 60.00 57.03 55.00 50.00 48.95 45.00 43.09 Quantity in LMT 39.78 40.00 36.93 35.00 30.00 25.00 20.00 15.00 FY 15‐16 FY 16‐17 FY 17‐18 FY 18‐19 FY 19‐20 Period 10
Slide 11: Sales (Preceding 5 Years)
SALES (Preceding 5 Years) SL .No. Particulars 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 1 Sale of Own Urea (LMT) 36.41 37.58 39.16 38.98 36.08 2 Bio‐Fertilizers (LMT) 0.005 0.005 0.005 0.006 0.007 3 BS (LMT) ‐ ‐ ‐ 0.07 0.08 4 Sale of Traded Goods:‐ (Fertilizers) 1. DAP (LMT) 0.51 2.14 3.28 5.04 6.85 2
Slide 12: Performance for the Quarter Ended Dec-2020
PERFORMANCE FOR THE QUARTER ENDED DEC-2020 12
Slide 13: Performance Highlights
PERFORMANCE HIGHLIGHTS Production of Urea of 9.99 LMT [CPLY 9.72 LMT],i.e. increase of 0.27 LMT. Capacity utilization of 123.81 % of RAC. Sale of total Urea 14.57 LMT [CPLY 13.32 LMT] including Urea imported on Govt. A/c., i.e. increase of 1.25 LMT. Sale of DAP/MOP/APS/NPK 12:32:16/NPK 10:26:2
Slide 14: Overall Performance (Rs. crore)
OVERALL PERFORMANCE (Rs. crore) Particulars Qtr ended CPLY Increase/(decrease) Dec 2020 Rs. crore % Total Revenue from Operation 2938.69 3789.17 (850.48) (22) Total Expenses (excluding Depreciation & 2728.25 3482.04 (753.79) (22) Finance Cost) Earnings before Interest, Tax 210.44 307.13 (96.69) (31)
Slide 15: Sale of Fertilizers
Sale of Fertilizers LMT Particulars Qtr ended CPLY Increase/(decrease) Dec 2020 LMT % Sale of Manufactured Fertilizers Urea 9.60 10.05 (0.45) (4) Bio Fertilizers and Bentonite Sulphur 0.06 0.03 0.03 100 Total (A) 9.66 10.08 (0.42) (4) Sale of Traded Fertilizers Imported Urea (Govt. A/c) 4.97 3.27 1.
Slide 16: Production & Purchase of Fertilizers
Production & Purchase of Fertilizers LMT Particulars Qtr ended CPLY Increase/(decrease) Dec 20 LMT % Production Urea Production 9.99 9.72 0.27 3 Bio Fertilizers and Bentonite 0.05 0.04 0.01 25 Sulphur Production Total Production of all 10.04 9.76 0.28 3 Fertilizers (A) Purchase Purchase of Imported
Slide 17: Zone wise sale of urea
Zone wise sale of urea (Including Imported Urea on Govt. Account) (Lakh MT) Zonal Offices Qtr ended CPLY Increase/ Dec 2020 (Decrease) Chandigarh Zone 5.88 5.40 0.48 Bhopal Zone 4.03 3.62 0.41 Lucknow Zone 3.58 3.30 0.28 Hyderabad Zone 1.08 1.00 0.08 TOTAL 14.57 13.32 1.25 Sale of Urea at all zone
Slide 18: Sale of DAP / MOP / APS / NPK / Compost / WSF / SSP
Sale of DAP / MOP /APS / NPK12:32:16 / NPK10:26:26 / COMPOST / WSF / SSP (Lakh MT) Qtr ended CPLY Increase/ Particulars Dec 2020 % (Decrease) DAP 0.69 2.54 (1.85) (73) MOP 0.37 0.32 0.05 17 APS 0.43 0.05 0.38 760 NPK 12:32:16 0.28 0.28 - - NPK 10:26:26 0.01 0.04 (0.03) (76) Compost 0.07 0.06 0.01 15
Slide 19: Details of Expenses (Excluding Depreciation and Finance Cost)
Details of Expenses (Excluding Depreciation and Finance Cost) Particulars Qtr ended Increase/ Key reasons CPLY (Decrease) Dec 2020 Production of urea (LMT) 9.99 9.72 0.27 Sale of urea (Own) (LMT) 9.60 10.05 (0.45) (Rs. Crore) (Rs. Crore) (Rs. Crore) Cost of Materials consumed 998.54 1136.63 (138.09)
Slide 20: Urea Production
UREA PRODUCTION Lakh MT Qtr ended Unit CPLY Increase/(Decrease) Dec 2020 Nangal 1.53 1.44 0.09 Panipat 1.54 1.48 0.06 Bathinda 1.52 1.52 - Vijaipur I 2.41 2.76 (0.35)* Vijaipur II 2.99 2.52 0.47 9.99 9.72 Total Production of Urea during the quarter was higher at all units except Vijaipur-I unit as
Slide 21: Production of Urea in Preceding Years (Q3)
Production of Urea in Preceding 5 Years (Qty. in LMT) Production of Urea for the 3rd Quarter (Oct to Dec) 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 Units Q3 Q3 Q3 Q3 Q3 NANGAL 1.45 1.41 1.47 1.44 1.53 PANIPAT 1.47 1.51 1.46 1.48 1.54 BATHINDA 1.46 1.51 1.53 1.52 1.52 VIJAIPUR- I 2.65 2.69 2.67 2.76 2.
Slide 22: On-Stream Days in Preceding Years
On-Stream Days in Preceding 5 Years (No. of Days) Stream Days for the 3rd Quarter (Oct to Dec) 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 Units Q3 Q3 Q3 Q3 Q3 NANGAL 90 84 89 86 92 PANIPAT 89 91 85 89 91 BATHINDA 88 91 91 92 92 VIJAIPUR- I 86 88 88 92 79 VIJAIPUR-II 92 77 90 80 92 22
Slide 23: Energy Consumption
ENERGY CONSUMPTION (GCAL/MT OF UREA) Energy Norms for Energy Norms for Actual Actual Units Qtr ended Dec 2020 CPLY Qtr ended CPLY Dec 2020 Nangal 6.500 7.065 6.602 6.737 Panipat 6.500 7.558 6.767 6.901 Bathinda 6.500 7.430 6.660 6.751 Vijaipur I 5.500 5.884 5.662 5.835 Vijaipur II 5.500 5.500 5.437
Slide 24: Break Up of Total Finance Cost
BREAK UP OF TOTAL FINANCE COST Rs. Crore Particulars Qtr ended Dec CPLY Increase/ 2020 (Decrease) Interest on Long Term Loans 2.19 4.09 (1.90) Total Interest on Long Term Loan (A) 2.19 4.09 (1.90) Interest on working capital Loans (excluding interest on trading activities) 40.60 62.76 (22.16) Other
Slide 25: Analysis of Finance Cost on Working Capital
ANALYSIS OF FINANCE COST ON WORKING CAPITAL Rs. crore Qtr ended Dec Increase/ Particulars CPLY 2020 (Decrease) Interest on working capital Loans (excluding 40.60 62.76 (22.16) interest on trading activities) Interest on Trading Activities 13.95 21.46 (7.51) Other borrowing costs (CP related charges)
Slide 26: Performance for the Nine Months Ended December-2020
PERFORMANCE FOR THE NINE MONTHS ENDED DECEMBER-2020 26
Slide 27: Performance Highlights
PERFORMANCE HIGHLIGHTS Production of Urea of 28.48 LMT [CPLY 27.25 LMT],i.e. increase of 1.23 LMT. Capacity utilization of 117.57% of RAC. Sale of total Urea 37.96 LMT [CPLY 36.17 LMT] including Urea imported on Govt. A/c., i.e. increase of 1.79 LMT. Sale of DAP/MOP/APS/NPK 12:32:16/NPK 10:26:
Slide 28: Overall Performance (Rs. crore)
OVERALL PERFORMANCE (Rs. crore) Particulars Nine Months CPLY Increase/(decrease) Ended Dec 20 Rs. crore % Total Revenue from Operations 8944.49 10120.93 (1176.44) (12) Total Expenses 8144.90 9528.16 (1383.26) (15) Earnings before Interest, Tax Depreciation and Amortization (EBITDA) 799.59 592.77 206
Slide 29: Revenue From Operation Growth
Revenue From Operation Growth Rs. 8944.49 crore (Nine Months Ended Dec‐20) (11.62%) Rs. 10120.93 crore (CPLY) Total revenue from operations is lower mainly due to decrease in sale value of own Urea by Rs 860.51 crore (due to reduction in gas price) and decrease in sale of Imported Urea by Rs 66.92
Slide 30: Profit / (Loss) before tax (PBT)
Profit / (Loss) before tax (PBT) Rs. 346.77 crore (Nine Months Ended Dec‐20) 387.72% Rs. 71.10 crore (CPLY) 30
Slide 31: Sale of Fertilizers (Lakh MT)
Sale of Fertilizers (Lakh MT) Particulars Nine Months CPLY Increase/ % Ended Dec 20 LMT (Decrease) Sale of Manufactured Fertilizers Own Urea 29.90 27.45 2.45 9 Bio Fertilizers and Bentonite Sulphur 0.16 0.06 0.10 144 Total (A) 30.06 27.51 2.55 9 Sale of Traded Fertilizers Imported Urea (Govt. A/c) 8
Slide 32: Production & Purchase
PRODUCTION & PURCHASE LMT Particulars Nine Months CPLY Increase/(decrease) Ended Dec 20 LMT % Production Urea Production 28.48 27.25 1.23 5 Bio Fertilizers and Bentonite Sulphur Production 0.11 0.10 0.01 10 Total Production of all fertilizers (A) 28.59 27.35 1.24 5 Purchase Purchase of Imported Fert
Slide 33: Zone wise sale of urea
Zone wise sale of urea (Including Imported Urea on Govt. Account) (Lakh MT) Zonal Offices Nine Months CPLY Increase/ Ended Dec 20 (Decrease) Chandigarh Zone 15.09 13.68 1.41 Bhopal Zone 10.22 10.08 0.14 Lucknow Zone 9.72 9.62 0.10 Hyderabad Zone 2.93 2.79 0.14 TOTAL 37.96 36.17 1.79 Sale of Urea a
Slide 34: Sale of DAP/MOP/APS/NPK/Compost/WSF/SSP (Lakh MT)
Sale of DAP/MOP/APS/NPK12:32:16/NPK10:26:26/COMPOST/ WSF/ SSP (Lakh MT) Particulars Nine Months CPLY Increase/ % Ended Dec 20 (Decrease) DAP 4.38 5.86 (1.48) (25) MOP 0.78 0.55 0.23 42 APS 0.84 0.28 0.56 200 NPK 0.53 0.46 0.07 15 NPK 10:26:26 0.15 0.12 0.03 25 Compost 0.18 0.16 0.02 13 Water Soluble
Slide 35: Details of Expenses (Excluding Depreciation and Finance Cost)
Details of Expenses (Excluding Depreciation and Finance Cost) Particulars Nine Months CPLY Increase/ Key reasons Ended Dec20 (Decrease) Production of urea (LMT) 28.48 27.25 1.23 Sale of urea (Own) (LMT) 29.90 27.45 2.45 (Rs. Crore) (Rs. Crore) (Rs. Crore) Cost of Materials consumed 2622.84 3361.19 (
Slide 36: Urea Production Lakh MT
UREA PRODUCTION Lakh MT Units Nine Months CPLY Increase/(Decrease) Ended Dec 20 Nangal 4.31 4.28 0.03 Panipat 4.38 4.15 0.23 Bathinda 4.33 4.10 0.23 Vijaipur I 7.08 7.17 (0.09) Vijaipur II 8.38 7.55 0.83 Total 28.48 27.25 Production at Vijaipur I unit was lower due to load limitation arising out o
Slide 37: Production of Urea in Preceding Years (Nine Months)
Production of Urea in Preceding 5 Years (Qty. in LMT) Production of Urea for the Nine months (Apr to Dec) 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 NINE NINE NINE NINE NINE Units MONTHS MONTHS MONTHS MONTHS MONTHS NANGAL 3.83 4.28 3.97 4.28 4.31 PANIPAT 3.99 4.43 4.22 4.15 4.38 BATHINDA 4.30 4.12 4.44
Slide 38: On-Stream Days in Preceding Years
On-Stream Days in Preceding 5 Years (No. of Days) On‐Stream Days in the Nine months (Apr to Dec) 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 Units NINE MONTHS NINE MONTHS NINE MONTHS NINE MONTHS NINE MONTHS NANGAL 241 259 245 259 264 PANIPAT 246 271 257 254 270 BATHINDA 266 252 270 253 267 VIJAIPUR- I 2
Slide 39: Energy Consumption
ENERGY CONSUMPTION (GCAL/MT OF UREA) Averaged Energy Norms Energy Norms for Actual Energy Units for Nine Months Ended 2019‐20** Nine Months Dec‐20* CPLY Ended Dec 20 Nangal 6.857 7.065 6.728 6.751 Panipat 7.169 7.558 6.880 7.014 Bathinda 7.087 7.430 6.824 6.911 Vijaipur I 5.743 5.884 5.782 6.035 Vij
Slide 40: Profit Variance Analysis
PROFIT VARIANCE ANALYSIS Company has earned Profit before tax of Rs. 346.77 crore during the Nine months ended Dec‐20 as against Profit before tax of Rs. 71.10 crore during CPLY i.e. increase in profit by Rs. 275.67 crore. The various reasons for increase in PBT are as follows: PBT has increased mai
Slide 41: Break Up of Total Finance Cost
BREAK UP OF TOTAL FINANCE COST Rs. crore Particulars Nine Months CPLY Increase/ Ended Dec 20 (Decrease) Interest on Long Term Loans 7.07 9.79 (2.72) Total Interest on Long Term Loan (A) 7.07 9.79 (2.72) Interest on working capital Loans 174.88 214.20 (39.32) (excluding interest on trading activities
Slide 42: Analysis of Finance Cost on Working Capital
ANALYSIS OF FINANCE COST ON WORKING CAPITAL Rs. crore Nine Months Increase/ Particulars CPLY Ended Dec 20 (Decrease) Interest on working capital Loans (excluding interest on trading activities) 174.88 214.20 (39.32) Interest on Trading Activities 48.50 78.10 (29.60) Other borrowing costs (CP related
Slide 43: Interest Coverage Ratio (ICR) & Debt Service Coverage Ratio (DSCR)
INTEREST COVERAGE RATIO (ICR) & DEBT SERVICE COVERAGE RATIO (DSCR) Particulars Unit Nine Months CPLY Ended Dec 20 Cash available for debt service Rs. Crore 675.73 455.71 (PBT + Depreciation + Finance cost) Finance Cost Rs. Crore 237.89 312.63 Interest Coverage Ratio (ICR) Times 2.84 1.46 Finance Cos
Slide 44: Debt to Equity Ratio
DEBT TO EQUITY RATIO S. Particulars As on 31st As on 31st No. Dec 20 Dec 19 1 Long term Borrowings 718.12 516.41 2 Short term Borrowings 6318.38 5968.76 3 Total Borrowings 7036.50 6485.17 4 Net worth 2171.51 2239.16 5 Total Debt : Equity ratio 3.24 2.90 (3 divided by 4) 6. Long-term Debt: Equity rat
Slide 45: Segment Results for the Nine Months Ended Dec 2020
SEGMENT RESULTS FOR THE NINE MONTHS ENDED DEC 2020 45
Slide 46: Segment Results
SEGMENT RESULTS Rs. crore Nine Months Nine Months Particulars Ended Ended Dec 2020 Dec 2019 Segment Revenue Own Fertilizers (Urea, BS and Bio-fertilizers) 6149.55 6850.40 68.75% 67.69% Fertilizer Trading 2575.36 3085.98 28.79% 30.49% Other Products 219.58 184.55 2.46% 1.82% Total 8944.49 10120.93 Se
Slide 47: Sale Breakup Segment wise
Sale Breakup Segment wise-Urea/Traded goods/Industrial Product & Others Product (Value & % Sale) Nine Months Ended Nine Months Ended Dec 2020 Dec 2019 Other Other Products Products & Fertilizer & Fertilizer services, ₹ Trading , ₹ services, ₹ Trading , ₹ 184.55, 2,575.36, 219.58, 3,085.98, 1.82% 28.
Slide 48: Consolidated Accounts
CONSOLIDATED ACCOUNTS 48
Slide 49: Consolidated Accounts
CONSOLIDATED ACCOUNTS The Consolidated Financial Statements are prepared in accordance with the principles and procedures for the preparation and presentation of consolidated accounts as set out in the accounting standards (Ind‐AS 28) as prescribed under Section 133 of the Companies Act, 2013. The
Slide 50: Consolidated Accounts Rs. crore
CONSOLIDATED ACCOUNTS Rs. crore STANDALONE CONSOLIDATED Particulars Nine months Nine months Nine months Nine months ended Dec 20 ended Dec 19 ended Dec 20 ended Dec 19 Revenue from operations 8944.49 10120.93 8944.49 10120.93 Total Expenses 8379.54 9774.77 8379.54 9774.77 Profit/ (Loss) from operati
Slide 51: New Projects and Other Activities
NEW PROJECTS AND OTHER ACTIVITIES 51
Slide 52: Projects and Other Activities Status
Projects and Other Activities status Company has contributed Rs. 447.63 crore upto 31.12.2020 towards equity in its JV Company (RFCL).Due to Cost overrun, additional equity infusion of Rs. 43.83 crore by NFL is required , resulting in total equity investment amount of Rs. 491.46 crore. Term loan
Slide 53: Overview of Ramagundam Project
Overview of Ramagundam Project (Being executed by RFCL) Joint Venture of NFL, Engineers India Limited (EIL) & Fertilizers Corporation of India Limited (FCIL) is undertaking the revival of Ramagundam unit of FCIL through RFCL Plant Capacity Ammonia Plant : 2200 MTPD (0.726 MMTPA) Urea Plant : 3850
Slide 54: Thank You
\7 AUB UF THANK YOU
National Fertilizers — Q3 FY2021 Earnings Presentation on 6ix